Quantcast

The DNAinfo archives brought to you by WNYC.
Read the press release here.

Staten Island Car Dealership Ordered to Return $1.5M in Hidden Charges

By Nicholas Rizzi | December 8, 2016 11:16am
 Attorney General Eric Schneiderman announced he settled with a Staten Island car dealership which charged hidden costs.
Attorney General Eric Schneiderman announced he settled with a Staten Island car dealership which charged hidden costs.
View Full Caption
DNAInfo/Nicholas Rizzi

STATEN ISLAND — A Staten Island car dealership will pay $1.5 million back to customers for saddling them with hidden fees after sales, the attorney general announced.

SG Hylan Motors Corp., which runs Staten Island Honda and Staten Island Nissan, settled a lawsuit with Attorney General Eric Schneiderman for illegally selling services and products to more than 2,300 customers after they bought cars.

"When consumers shop for a car, they deserve an honest and fair negotiation — and not to be misled by deceptive dealerships looking to saddle customers with hidden costs," Schneiderman said in a statement.

"My office will continue to investigate and hold accountable any auto dealers trying to pad their pockets by charging fees for undisclosed products and services that consumers do not need and did not ask for."

Schneiderman said that SG Hylan charged fees for things like credit repair and identity theft protection — which customers had not been told they were buying. Those costs would sometimes be more than $2,000.

SG Hylan must return $1.5 million to customers and pay a $100,000 fine under the settlement, the attorney general said.

Aside from SG Hylan, Schneiderman also settled with Long Island-based dealership Best Auto for illegally charging more than 200 customers for after-sale items.

They agreed to pay $115,000 in restitution and a $10,000 fine, Schneiderman said.

Under the settlement, the dealers are barred from selling credit repair and identity theft services with the sale or lease of cars, after-sale products unless they are disclosed verbally and in writing and misrepresenting the price of cars in final lease or sale contracts.

They also must give customers agreements that itemize each after-sale product or service and its price, Schneiderman said.